Organizational Structure, Culture, and Change Overview

Organizational Structure

The system that defines how work is coordinated within an organization, including formal reporting relationships, grouping of individuals, and hierarchy.

Hierarchical Levels

The number of distinct management levels from top executives to entry-level employees.

Tall Structure

Many layers, clear chain of command.

Flat Structure

Fewer layers, more employee autonomy.

Departmentalization

How employees are grouped (by function, product, geography, etc.).

Functional Structure

Groups by common function (e.g., Marketing, HR).

Divisional Structure

Groups by product, service, or customer base.

Matrix Structure

Hybrid of functional and divisional; employees report to multiple managers.

Centralization

Degree to which decision-making authority is concentrated at higher levels.

Formalization

Extent to which policies, procedures, and job descriptions are written down.

Mechanistic Structure

Rigid, hierarchical, centralized, and rule-bound (e.g., traditional manufacturing).

Organic Structure

Flexible, flat, decentralized, and adaptable (e.g., tech startups).

Organizational Culture

A system of shared assumptions, values, and beliefs that guide behavior in an organization.

Artifacts

Visible symbols (e.g., dress code, office layout, slogans).

Espoused Values

Stated goals or mission (e.g., 'Customer First').

Basic Assumptions

Unwritten, taken-for-granted norms (e.g., 'Work late to succeed').

Culture Strength

How widely shared and rigid the culture is.

Strong Culture

High cohesion but resistant to change.

Attraction-Selection-Attrition (ASA) Process

Employees self-select into cultures they fit; organizations hire for cultural fit; misfits leave.

Organizational Change

A shift in structure, policies, culture, or technology toward new ways of operating.

Lewin's 3-Stage Model of Change

Unfreeze, Change, Refreeze.

Unfreeze:

Ensure as many people are ready for change as possible

Change:

the implementation/execution of the change

Refreeze:

ensure that change becomes established as the new normal/standard

Kotter's 8-Step Model

Create urgency, Build a coalition, Form a vision, Communicate vision, Empower action, Generate short-term wins, Sustain momentum, Anchor changes in culture.

Resistance to Change

Causes: Fear of uncertainty, personal impact, loss of power.

Matrix Organization

Hybrid structure where employees report to both functional and project managers.

Work Specialization

Degree to which tasks are divided into separate jobs (e.g., assembly line vs. generalist roles).

Espoused vs. Enacted Values

Espoused: What the organization claims to value; Enacted: What is actually rewarded/practiced.

Theory X vs. Theory Y

Theory X: Employees are lazy and need control; Theory Y: Employees are self-motivated and creative.

Duck Dynasty Case Example

Failed Change: Introduction of uniforms resisted because it clashed with the company's informal, anti-policy culture.